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What is infrastructure Bonds?

Date: 11 Apr 2011   Group: Finance and Investments    Category: Tax Planning   


What is infrastructure Bonds?


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Author: Iqbal Singh    16 Apr 2011      Member Level: Bronze     Points : 3    Voting Score: 0

Infrastructure bonds are those bonds the proceeds of which are invested by the company in the infrastructure facilities of the country. Such bonds carries a fixed rate of interest to be paid at the time of maturity.

Today these bonds have become a tool of tax planning. If a person is investing in infrastructure bonds, he / she will be eligible for deduction upto maximum of Rs.20,000.00 every financial year.

Author: George    17 Apr 2011      Member Level: Silver     Points : 4  (Rs 2)    Voting Score: 0

Infrastructure bonds are long term investment bonds issued by any non banking financial company like Industrial Finance Corporation of India or IDF. These companies are an ombudsman borrowing from the investors and lending to the government. These bonds are used to fund government's infrastructure projects. Thus an individual is directly helping in nation development. There is an additional advantage of tax benefit under the 80CCF 1981 to the tune of 20000 rupees. The highest tax payers regardless of age bracket can invest in these plans. These bonds have a maturity period of 10 to 15 years. After say 5 years one can use the option of buy back or he can always enjoy the interest annually or compounded interest at the end of the period. You need a pan card, address proof and demat account to apply.



Author: Prem Prakash Sharma    17 Jun 2011      Member Level: Silver     Points : 2    Voting Score: 0

Infrastructure Bonds are the bonds which are issued to develop the infrastructure across the country - like Highway Projects, Railway Projects, Development of Airports etc.

There is a tax benefit up to Rs. 20,000 under section 80 C if we invest in these bonds.

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